Preparation of the Informal Competitiveness
Council of Ministers, Cardiff, 11-12 July 2005 –

(Gregor Kreuzhuber, Oliver Drewes, Antonia Mochan)

The EU Competitiveness Council will hold an informal meeting in Cardiff
on Monday 11 and Tuesday 12th. On Monday Ministers responsible for Research
will meet at 10.30 under the chairmanship of Lord Sainsbury and on Tuesday 12th
Alan Johnson, Secretary of State for Trade and industry will chair the meeting
on Better Regulation and the Internal Market. The European Commission will be
represented by Vice President Günter Verheugen, responsible for Enterprise
and Industry, Charlie McCreevy, Commissioner for the Internal Market and
Services, Commissioner Janez Potocnik, responsible for Science and Research
.

Monday 11 July Meeting of research Ministers

The seventh framework Programme: excellence in science and the
exploitation of science

The Ministers will have an informal exchange on:

- How to ensure that the European Reseach Council is run by scientists and is
independent (European Research Council is a proposal from the Commission who
enable funding investigator-driven research at the frontier of knowledge)

- how to best support small and medium sized enterprises

- how to improve business involvement in collaborative R & D

- how to unlock the potential of less research intensive countries

- how to simplify procedures

Commissioner Potocnik will share with the Ministers his views on these issues
and on how to build momentum in the process leading to the adoption of the 7th
Framework Programme.

He will in particular touch upon the question at which level research
investment is made in the most effective way.

He will confirm the Commission's full support for the UK Presidency in all
matters related to research.

Tuesday 12 July – Delivering Better regulation for Growth and
Jobs

On 16 March the Commission adopted an initiative designed to cut-red tape, to
tackle excessive regulation and to help to strike the right balance between
costs and benefits of legislation. (MEMO 05/93). Improving the quality of
regulation can significantly spur growth in the EU economy and business. This is
why “better regulation” is a centrepiece of the European
Commission’s “partnership for growth and jobs”. It is
essential for setting up the right conditions for growth and employment in
Europe.

Vice President Verheugen will present a report to ministers on progress made
since March. He will also call upon Member States to deliver on their end to
make the better regulation exercise a success. The main elements of the
Commission initiative are to improve the quality of impact assessments for EU
legislation, to carry out a screening and possible withdrawal of pending
Commission proposals adopted before 1 January 2004, to reinforce efforts to
simplify existing EU legislation and to better involve stakeholders in order to
have their views on how to reduce bureaucratic burdens.

Internal Market

Commissioner McCreevy will present current thinking on the Internal Market
and will focus on looking for practical solutions to the challenges ahead.. The
Commissioner will set out his vision for the coming years. He will argue that,
with the legislative framework now largely complete, the focus should shift
towards making the Internal Market work better in practice. The first ten years
of the internal market added 1.8% to GDP. It created 2.5 million extra jobs. In
the enlarged Union, the internal market now offers 450 million potential
consumers to our businesses – a huge advantage in a globalised world. This
allows for economies of scale. It helps to create and drive a dynamic culture of
innovation. It encourages wider competition, which in turn improves productivity
and efficiency and boosts economic growth

On the sensitive issue of services there is enormous untapped potential. The
proposal is now in the hands of the Council and the Parliament. The Directive
which emerges from the negotiations must achieve greater market opening so as to
create new opportunities for businesses and consumers. Commissioner McCreevy is
committed to practical solutions and a directive that works and can command
widespread support.

Improving the functioning of the internal market will require additional
effort from the Member States’ administrations which are responsible for
the Internal Market’s day-to-day operation. There is a need for close
co-operation to ensure that Internal Market principles are uniformly applied
across the Union and to solve the problems which people encounter when trying to
exercise their Internal Market rights